Kuwait is the cheapest country in the GCC to mine bitcoins, according to estimates from Elite Fixtures – although miners may want to avoid Bahrain.
A map published by the home lighting and fixtures company based in new Jersey – who probably know more about electricity costs than cryptocurrencies – charts the cost of mining a single Bitcoin in 115 countries based on the three most popular mining “rigs”, or supercomputers used in the mining process.
'Mining' is the process by which computers verify transactions on the Bitcoin blockchain by solving a series of increasingly complex mathematical problems.
This activity is central to the decentralised nature of the cryptocurrency and, as a result, is rewarded through a payment in the new Bitcoins it creates.
Kuwait is the cheapest in the GCC, with a rate of $1,983 per Bitcoin, making it highly profitable considering Bitcoin’s recent rally to $11,500 – and around two-thirds of the cost to mine in Saudi Arabia, where mining one Bitcoin will cost $3,172.
In the UAE, that figure rises to $3,569, which is still offering more than 300 percent returns.
Poor old Bahraini miners, though, require $16,773 of electricity to mine a Bitcoin – making it not only the most expensive country in the GCC but the third most expensive in the world behind South Korea (a whopping $26,170) and the South Pacific nation of Niue.
The cheapest place to mine Bitcoin globally is Venezuela, which has just launched its own cryptocurrency, the Petro. Mining there costs just $531 per coin.
Caution is advised, though, as it’s unclear how the site came to its conclusion regarding energy costs.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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